Rice is an essential good that is used by greatest amount of people throughout the world particularly in Asia, Latin America and Middle East. It is the agronomic good that is universally cultivated maximum 480 million metric tons per anum after sugarcane and maize. The cost of rice be influenced by some aspects that are as follows.
- Requirement in china and India
- Merchandise plans
- Cost of crude oil
Financiers invest in agronomic goods due to several causes generally due to the following:
- Universal requirement
- Variation in seasons
- Hedge against price rising
- Assortment divergence
Rice futures contract are universally traded on Chicago mercantile exchange (CME) having size of 2,000 hundred weights. Merchants should have a good knowledge about the aspects that effect the rates of rice before investment in rice.